Global Lithium-Ion Battery Anode Market Outlook to 2028

The lithium-ion battery anode market is being driven by the reliability and compatibility of lithium-ion batteries in various applications, such as electric vehicles, electronic products, energy storage, technological advancements of lithium-ion batteries in durability, energy density, efficiency, and low charging time and leading to increase or fuel the demand for lithium-ion battery anode market.

Drivers:

• Growing demand for high energy, power density, and fast charging battery anode materials to perform over hundreds of cycles during the charging and discharging of batteries.
• Growing technical advancements in anode materials are decreasing the lithium-ion battery price.
• Growing battery materials investments in various countries to improve the battery value chain.
• Growing consumer expectations in automotive OEMs increased the demand for high-performance anode materials.
• Decreasing anode prices and high energy density have increased the demand for lithium-ion batteries.
• Rising environmental concerns are increasing the demand for batteries.
• Growing demand for energy storage systems in renewables, telecom, data centers, and others is increasing the demand for lithium-ion battery anode materials.

Batteries work through an electrochemical reaction involving electrolytes (lithium(Li) ions) that flow back and forth from the positive pole (+) to the negative pole (-) to generate electricity. They can be recharged and reused multiple times and used for sustainable power mobility, including EVs, IT devices, diverse home appliances, and other applications.

The primary components of Lithium-ion Batteries are cathodes, anodes, electrolytes, and separators. Anode makes up the negative charge (+) in batteries, a source of energy for lithium in lithium-ion batteries, which determines the battery capacity and the average voltage.

Anode materials are key components that determine the composition of positive electrodes. The lithium-ion batteries use graphite powder and silicon as an anode material. The anode materials are either synthetically produced (artificial graphite) or mined from the ground (natural graphite), then heavily processed before being baked onto a copper foil to serve as anodes.

Properties of Anode Materials: 

• The efficient, reducing agent
• High coulombic output
• High Electrical and Thermal conductivity
• High Packing Density
• Ease of fabrication
• Low cost
• Metals such as graphite and silicon are often used as anode materials.

Lithium-ion Battery materials are the basic raw materials and compounds in the battery supply chain, mainly consisting of metals such as Lithium, Nickel, and Cobalt, among others. They are extracted from upstream mining operations that convert seawater brines or mineral ores into processed battery metals. The end products are battery packs used in various end-use industries such as energy storage, consumer electronics, and automotive. 

The growing adoption of electric vehicles among consumers has helped boost the market for these energy-saving, pollution-reducing vehicles. In addition to the advanced battery technologies, the number of electric vehicles is constantly increasing thanks to the advantages associated with them, such as the reduced need to maintain the vehicle's engine, the reduction of hazardous oil waste, and the reduction in pollution caused by fuel combustion engines.

Automotive lithium-ion batteries provide power for electric vehicles. Lithium-ion batteries are widely used in electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), and their adoption is expected to increase even further in the future.

Lithium-ion Battery Anode Opportunities:

• Rapid technological development in batteries to meet customer needs has increased the demand for customized products.
• The growing demand for lithium-ion solid-state batteries is increasing the demand for anode materials in EVs.
• Growing usage of lithium-ion batteries in power backups, mobile, laptops, electric mobility, energy storage systems, and consumer electronic goods.  
• Markets with great potential are China, Germany, America, and others.

Lithium-ion Battery Materials Policies:

• In May 2018, under the European Green Deal policy, the European Commission adopted the strategic action plan on batteries to support the battery value chain in Europe, from raw material extraction, sourcing, and processing, battery materials, cell production, battery systems, and reuse to recycling.
• In November 2021, the United States introduced the Federal Consortium for Advanced Batteries (FCAB) to bring Federal agencies interested in domestic manufacturing and supply of lithium-ion batteries and are committed to accelerating the development of a robust and secure domestic industrial base.
• In March 2022, India introduced the National Programme on Advanced Chemistry Cell Battery Storage (NPACC) under the Production Linked Incentive (PLI) Scheme to support the battery value chain in India, from raw material extraction, sourcing, and processing, battery materials, cell production, battery systems, reuse to recycling.

Lithium-ion Battery Anode Challenges:

•  Battery materials safety issues related to storage and transportation of batteries
• Low competency in high heat tolerance anodes is challenging the market 

Lithium-ion Battery Anode Restraint:

• Growing demand for other batteries such as sodium-ion batteries and flow batteries in energy storage and mobility.

Recent Developments :

• In May 2022, Battery Maker Amprius Technologies is publicly merged with Kensington Capital to raise an equity capital 0f 250 million dollars.
• In April 2021, SGL Carbon signed a collaboration agreement with Altech Chemicals to develop high purity alumina-coated (HPA) graphite materials for use by the lithium-ion battery industry in anode application.
• In March 2021, SGL Carbon received around USD 51 million funding under IPCEI (Important Project of Common European Interest) for developing and industrialization of anode materials made of synthetic graphite for use in lithium-ion batteries.

Regional Market Analysis

The global lithium-ion battery anode market report is segmented based on geography into North America, including the United States, Canada, Mexico, and the Rest of North America; Europe, including Germany, France, United Kingdom (UK), Italy, Russia, and the Rest of Europe; Asia Pacific (APAC) including China, India, Japan, South Korea, Australia, Indonesia, and Rest of APAC; South America including Brazil and Rest of South America; and the Middle East and Africa including Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.

Asia-Pacific is expected to be the leading region in the lithium-ion battery anode market during the forecast period, followed by North America, Europe, the Middle East, and South America.

China, Australia, Japan, and South Korea are the major countries in Asia-Pacific with lithium-ion battery anode and a strong order book.

Asia Pacific:

The Asia Pacific region has countries that have both developing and established battery markets. For instance, countries such as China, India, South Korea, Japan, Australia, and others have an established large-scale ESS market, EV market, and others are increasing the demand for lithium-ion battery anode market.

The Asia Pacific is expected to be the largest region in the lithium-ion battery anode market during the forecast period. With a target to reduce emissions, energy storage systems demand will rise in the power generation sector, and electric vehicles demand will rise in transportation, especially in China, Japan, India, and others.

Blackridge Research's Lithium-Ion Battery Anode Market report provides insights into the current market demand environment and prognosis.

The study thoroughly examines the many factors that impact the development of Lithium-Ion Battery Anode. The study also comprehensively analyses the Lithium-ion battery anode by segmenting it based on region (Asia Pacific, North America, Europe, South America, Middle East, Africa), based on technology (Graphite Anode, Silicon Anode, and Others).

The report also discusses current and future market possibilities, market trends, advancements, the effect of Covid-19 and the Ukraine and Russian War on the Lithium-ion battery anode market, essential developments, regions, and segments poised for the fastest growing competitive landscape. Further, the lithium-ion battery anode market size, and demand forecast, growth rates will also be provided in the report.